Bombay High Court Empowers Homebuyers to Withdraw Builder Deposits During Appeals
Bombay HC upholds homebuyers' right to withdraw builder's deposit during appeal; How will this speed up refund on delayed projects?
The Economic TimesImage: The Economic Times
The Bombay High Court has ruled that homebuyers can withdraw pre-deposit amounts made by builders during pending appeals at the RERA appellate tribunal. This decision aims to expedite refunds for delayed projects, benefiting homebuyers who have faced financial hardships due to prolonged delays.
- 01Homebuyers can withdraw builder's pre-deposit during appeals.
- 02The ruling aims to expedite refunds for delayed housing projects.
- 03The decision supports the protective intent of the Real Estate (Regulation and Development) Act (RERA).
- 04Builders must be cautious as deposits can be released to buyers.
- 05This judgment is expected to benefit thousands of homebuyers in Maharashtra.
Advertisement
In-Article Ad
In a significant ruling, the Bombay High Court has affirmed that homebuyers can withdraw the pre-deposit amount made by builders while appeals are pending before the Real Estate Regulatory Authority (RERA) appellate tribunal. The case involved Mitul Gada, who booked two flats in the North Sea Heights project by Rare Townships Private Limited in 2015 for over ₹3 crore (approximately $360,000 USD) and paid nearly ₹2 crore (about $240,000 USD). After a delay in possession promised by December 2018, Gada sought a refund through MahaRERA, which ordered a full refund in September 2025. Following the builder's appeal, the tribunal allowed Gada to withdraw the deposited amount, leading to the builder's challenge in the High Court. The court upheld the tribunal's decision, emphasizing that the tribunal has the discretion to release deposits in deserving cases, particularly to alleviate the financial burden on buyers. This ruling is expected to expedite refunds for many homebuyers in Maharashtra, reinforcing the protective measures of RERA and ensuring that buyers are not left without relief during lengthy appeals.
Advertisement
In-Article Ad
This ruling will help homebuyers recover funds more quickly, reducing financial strain caused by project delays.
Advertisement
In-Article Ad
Read the original article
Visit the source for the complete story.


